Short version: There is almost indisputable proof that users at AP were cheating by somehow viewing the whole cards of their opponents. Some information has come out that indicates an AP employee or ex-employee may have been involved. There is further evidence that it may be ex-owner, Scott Tom.
1) During a tournament played by cheater 'Potripper,' the person who ended up coming second ("Marco") thought he was cheated. He emailed Absolute, and they sent him a hand history file - an XLS file.
2) Marco opened up this file, it seemed all gibberish to him, and he didn't think anything of it.
5) In passing discussion, Marco mentions he has this file. He shares it with a few people, including N 80 50 24(pokerdb.com maintainer, maker of The Poker Film, part owner of Bluff Media) who analyses what is in this file
6) Nat (N 80 50 24) & 2p2 poster Snagglepuss discover that this file is a complete hand history for the tournament - showing every table, and all hole cards of every player.
Quote: Also, for the straight dope on how this we got to this point, check out N825024's blog at http://www.natarem.com/.
7)In further analysis of the spreadsheet, Nat and Snagglepuss determine that the IP address, user number and email address of observers has been documented.
8)In 7, they determine that an account with user number 363 observes Potripper's table from 2 minutes into the tournament until the end.
9) At the start of the tournament, for the two hands that user #363 is not observing the table, Potripper folds preflop. He doesn't fold another hand pre-flop for 20minutes, when he open-folds with KK held by a player behind him.
10) They also discover another observer, with the same IP (in San Jose, Costa Rica), with a different user number and the email address firstname.lastname@example.org, observing another table for a short period of time.
11) It is speculated that 10 could be Potripper's user account.
12) It was determined that the domain rivieraltd.com was pointing to a mail server which happened to be on an IP allocated to Absolute Entertainment SA, at Mohawk Internet Technologies' data center.
12.5) Shortly (within an hour or two) after the findings in 12 are posted here, the DNS information for rivieraltd.com is deleted.
13)The IP associated with the observer in #10 turns out to be a residential cable modem registered to Scott Tom, AP's President as of 2005.
13 1/2) The IP address that this 'other' account was logged in from was traced to the home cable modem of Scott Tom, CEO of Absolute poker. email@example.com is apparently the CEO, and is also possibly (not certain) POTRIPPER.
15 1/2) The email contained a claim by Absolute that Scott Tom has not been associated with AP for over a year.